A Guide to Forensic Accounting Investigation

Thomas W. Golden, CPA, CFE. specializes in providing consulting and expert witness testimony in both civil and criminal matters with special expertise in forensic accounting, fraud investigation, and financial statement accounting. He is a former Chairman of the Board of Regents for the Association of Certified Fraud Examiners and the current President of the Better Government Association, a citizen watchdog group in Chicago, IL. Mr. Golden is an adjunct professor at DePaul University. Steven L. Skalak, CPA, is the National Practice Leader for PwC Investigations & Forensic Services of PricewaterhouseCoopers LLP. He has participated in a variety of corporate investigations relating to allegations that the Securities and Exchange Acts were violated, and of accounting or auditing improprieties. Steve has represented Audit Committees, Directors, Officers, Auditors, and Companies in class action litigation with shareholders and SEC investigations. Mona M. Clayton, CPA, CFE, specializes in international fraud investigations with particular emphasis in Latin America where she has conducted investigations. She has designed investigative practice aids providing for consistent methodologies to be incorporated across common scheme investigations. Ms Clayton is an adjunct professor at DePaul University.

Preface. Acknowledgments. 1 Fraud: An Introduction. 2 The Roles of the Auditor and the Forensic Accounting Investigator. 3 Psychology of the Fraudster. 4 Financial Reporting Fraud and the Capital Markets. 5 Auditor Responsibilities and the Law. 6 Independence, Objectivity, Skepticism. 7 Forensic Investigations and Financial Audits: Compare and Contrast. 8 Potential Red Flags and Fraud Detection Techniques. 9 Internal Audit: The Second Line of Defense. 10 Financial Statement Fraud: Revenue and Receivables. 11 Financial Statement Fraud: Other Schemes and Misappropriations. 12 When and Why to Call In Forensic Accounting Investigators. 13 Teaming with Forensic Accounting Investigators. 14 Potential Missteps: Considerations When Fraud Is Suspected. 15 Investigative Techniques. 16 Anonymous Communications. 17 Background Investigations. 18 The Art of the Interview. 19 Analyzing Financial Statements. 20 Data Mining: Computer-Aided Forensic Accounting Investigation Techniques. 21 Building a Case: Gathering and Documenting Evidence. 22 Supporting a Criminal Prosecution. 23 Report of Investigation. 24 Working with Attorneys. 25 Conducting Global Investigations. 26 Money Laundering. 27 Other Dimensions of Forensic Accounting. 28 Looking Forward: The Future of Forensic Accounting Investigation. Index.